Before opening a Bhc Restaurant, what kind of inventory must the Master Franchisee and Subfranchisees purchase?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Before opening a BHC Restaurant, Master Franchisee and Subfranchisees must purchase opening inventory of merchandise and supplies that includes certain proprietary products that Master Franchisee must purchase from Franchisor and Franchisor's affiliates.
(c) Franchisor will provide Master Franchisee with a list of approved manufacturers, suppliers, and distributors ("Approved Suppliers List") and approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies and other items or services necessary to operate the BHC Restaurant ("Approved Supplies List").
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, before opening a Bhc Restaurant, both the Master Franchisee and Subfranchisees are required to purchase an initial inventory of merchandise and supplies. This inventory must include specific proprietary products that must be purchased directly from Bhc or its affiliates. This ensures that all locations start with the essential branded items necessary for operation.
Throughout the term of the franchise agreement, Master Franchisees and Subfranchisees must maintain sufficient equipment and inventory to meet consumer demand for Bhc products. They are also required to purchase and sell ancillary products, such as books, specialty and packaged foods, hats, t-shirts, and novelty items, as specified by Bhc. All products offered at the Bhc Restaurant, especially those bearing Bhc's trademarks, must be purchased exclusively from Bhc or its designated suppliers.
Bhc will provide franchisees with an Approved Suppliers List and an Approved Supplies List, detailing approved manufacturers, suppliers, and distributors, as well as approved inventory products, fixtures, furniture, equipment, signs, stationery, and other necessary items. Bhc retains the right to designate required suppliers for certain products and may revise these lists as needed. This system ensures consistency and quality across all franchise locations, but it also means franchisees have limited flexibility in sourcing supplies and must adhere to Bhc's approved vendors.